For the year ended August 31, 2021, Zen Fitness Inc. had service revenue of $ 625,000; operating expenses of $ 265,000 and other expenses of $ 32,000. The company has a 20% tax rate and has previously accrued $ 25,000 in income taxes.
Instructions
a) Determine the income tax expense.
b) Prepare an income statement.
c) Prepare the entry to record the income taxes.

Question

Quizplus · Accepted Answer

The Answer of For the year ended August 31, 2021, Zen Fitness Inc. had service revenue of $ 625,000; operating expenses of $ 265,000 and other expenses of $ 32,000. The company has a 20% tax rate and has previously accrued $ 25,000 in income taxes.
Instructions
a) Determine the income tax expense.
b) Prepare an income statement.
c) Prepare the entry to record the income taxes.

For the Year Ended August 31, 2021, Zen Fitness Inc